Retailers push back against proposed 0.4% MDR on UPI transactions above Rs 2,000, warn of hit to thin margins

Kolkata: Retailers across the country are mounting a strong pushback against the proposed merchant discount rate (MDR) on unified payments interface (UPI) transactions above ₹2,000, with industry associations representing consumer electronics, mobile phones and FMCG retailers petitioning the finance ministry to scrap the charge, saying it will erode their already thin net margins.

In a letter to the finance ministry Wednesday, the All India Mobile Retailers Association (AIMRA), representing 150,000 neighbourhood stores, highlighted that the sector is facing a severe crisis, with a nearly 40% year-on-year drop in business volumes as companies raised handset prices to offset higher memory chip costs.